Yahoo Mail Ad-Blocking Move Angers Users - InformationWeek

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Yahoo Mail Ad-Blocking Move Angers Users
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larryloeb
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larryloeb,
User Rank: Author
11/25/2015 | 8:38:01 PM
Re: Economics
It won't work.

Investors will watch declining users and flee.
Brian.Dean
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Brian.Dean,
User Rank: Ninja
11/25/2015 | 8:31:30 PM
Re: Economics
You are 100% correct and driving revenue in this way will be short lived. Maybe, Yahoo needs a short term boost to its revenue to drive up its stock price and hold retained earnings for an investment or to sell the concerning division at a good price.
larryloeb
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larryloeb,
User Rank: Author
11/25/2015 | 8:13:36 PM
Re: Economics
Yahoo seems these days to be focused on driving revenue from display ads to the exclusion of all else. And that includes keeping users.
Brian.Dean
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Brian.Dean,
User Rank: Ninja
11/25/2015 | 8:05:08 PM
Economics
A user will have to watch ads, or sponsored content will be mailed to the user based on words that are present in the user's inbox conversations. Alternatively, a user can follow the subscription model, complete isolation -- good or bad.

However, Yahoo should not try to force users to pay and the company should develop a long term strategy for its display network. The market has become a bit more competitive ever since, Facebook come onto the scene as it has managed to capture viewership. Google would have not been safe but, Google focused on a long term strategy and one of the areas of focus was to introduce users to the ease of utilizing their display network -- driving up revenue. 

If we go to Yahoo's advertising page then, the first impression is a page that seems broken. For instance, that text reading "Introducing Yahoo Gemini" is in black over a colorful cover type picture.
larryloeb
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larryloeb,
User Rank: Author
11/25/2015 | 6:38:15 AM
Re: Short sighted
You may have hit the nail on the head.

They haven't created anything of value.

They tried, but nothing has really caught on.
Broadway0474
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Broadway0474,
User Rank: Ninja
11/24/2015 | 10:56:21 PM
Re: Short sighted
Larry, hasn't the Alibaba deal turned out to be a major writeoff/loss? They are a sad-sack case. I can remember when I got my first web email --- it was mid to late 90s and it was a Yahoo address. Now, they have relied on a shock and awe campaign of big and small acquisitions, but they haven't created anything new or exciting. They haven't changed the tide of momentum against them. And now the vultures are circling even their revered CEO.
larryloeb
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50%
larryloeb,
User Rank: Author
11/24/2015 | 8:17:17 PM
Re: Short sighted
What you are talking about is the subscription model. If you want the content, subscribe. It's worked for paper magazines and some e-pubs. But times change.

There has long been a saying about the internet: If it is a free service, you are the product. Not everyone has realized that is the tradeoff.

And that is the crux of the problem. Want it free? Watch the ads and let yourself be tracked.
danielcawrey
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danielcawrey,
User Rank: Ninja
11/24/2015 | 7:16:24 PM
Re: Short sighted
This is becoming such a contentious issue. Media and technology companies need to make money from their products. However, consumers are getting really tired of all the ads. 

What's the solution? I'm wondering if consumers would be willing to pay small amounts of money for an ad-free service. I know Google is trying this out right now, and I think that the numbers could work for tech and media companies alike. They should at least try it...
larryloeb
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50%
larryloeb,
User Rank: Author
11/24/2015 | 12:45:12 PM
Re: Short sighted
@jastroff

If that is their motivation, it is extrememly short-sighted on their part. They will accelerate the death spiral.
larryloeb
100%
0%
larryloeb,
User Rank: Author
11/24/2015 | 12:43:47 PM
Re: Short sighted
@DDurbin

Ballmer's offer was made while Yahoo was still a major player. More importantly, the investment in Alibaba had not been played out yet. Investors had very high hopes for that payout.

If they are trying to max revenues short term, it will end up killing them.
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